Traders and investors are watching Wall Street’s major market averages move in a mixed direction on Monday, as market participants prepare for the Federal Reserve’s monetary policy announcement, which is scheduled to be released later in the week.
Lead the way down The NASDAQ Composite has been focused on technology.Compound: Indian), which is low. 0.7%On the other hand, the Dow Jones Industrial Average roseDJI) rose higher by 0.7%The benchmark S&P 500 index (sb 500) is trading near a flat level.
From a sector perspective, nine of the S&P 500’s 11 sectors are trading in positive territory. The two sectors that have advanced the most on the day so far are energy and financial services, while information technology has suffered the most.
The Treasury market saw limited movement. The yield on the 2-year US Treasury note (US2Y) fell 1 basis point to 3.57%. Meanwhile, the yield on the 10-year US Treasury note (US10Y) rose 1 basis point to 3.65%. You can see how other yields are trading across the entire yield curve here.
On the economic front, the Empire State Manufacturing Index recorded its highest reading in September since April 2022.
The Federal Reserve is scheduled to meet on Tuesday and Wednesday, and is widely expected to cut interest rates. According to Federal Reserve Monitoring ToolThe probability of a 50 basis point rate cut on Wednesday is 59%, while the probability of a 25 basis point rate cut is 41%.
“The economic data did not provide a compelling case for a 50 basis point rate cut at the next meeting,” Standard Chartered said. “A 50 basis point rate cut and getting it wrong is likely to be worse than a 25 basis point rate cut and getting it wrong,” the bank added.
“A rate cut is clearly expected, as inflation pressures in the US continue to ease,” said Paul Donovan of UBS. “However, a cut of more than 25 basis points seems unlikely – while the Fed has been slow to cut rates, a bigger move could be seen as a sign of panic. More frequent cuts rather than bigger ones seem more likely.”
On the political front, former President Donald Trump survived what the FBI described as an apparent assassination attempt on Sunday at his golf course in West Palm Beach, Florida.
As for stocks that are moving, Intel (INTC) shares rose after reports emerged that the company is on the verge of receiving up to $3.5 billion in federal grants to manufacture semiconductors for the Pentagon.
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